A study on the financial performance of the State Bank of India with reference to Camel Model

The Analyst has come up with a special issue on the banking industry for a third consecutive year. To assess Indian banks, The Analyst adopted the world-renowned camel model (with minor modifications). The reason being, the camel model is simple and makes it easy to compare a wide range of banks present in india. camel Stands for Capital Adequacy, Asset Quality, Earnings Quality, Liquidity. In the consecutive banking special issues, The Analyst has ranked the banks in each parameter, based on the average individual rank a bank achieved for each ratio. Also, in this issue, The Analyst has categorized the banks into public sector banks, private banks and foreign banks. Apart from analyzing the banks and foreign banks on each of the ratios based on the camel model. The Analyst also provided additional information like Total Assets on each of these banks. Capital Adequacy reflects the overall financial condition of the banks and also the ability of the management to meet the need for additional capital. it reflects a bank's leverage. The prime motto behind measuring the asset quality is to ascertain the component of non-performing assets as a percentage of the total assets. In addition, the parameter also ascertains the NPA movement and the amount locked up in investments as a percentage of the total assets. Management involves a subjective analysis for measuring the efficiency of the management. To measure the efficiency of the management we used parameters like profit per branch, business per employee and advances to deposits.